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Banking law and practice_moduule -1

Total questions: 71

Worksheet time: 1hrs 13mins

Name
Class
Date
1.

Cheque is a????

a)

A) Bills of exchange

b)

B) promissory notes

c)

c) Both A & B

d)

None of the above4

2.

An instrument in writing containing an unconditional order and unconditional undertaking are known as ------------ and ---------- respectively.

a)

Promissory note and Bill of Exchange

b)

Promissory notes and promissory note

c)

Bill of Exchange and Promissory note

d)

Bill of Exchange and Bill of Exchange

3.

Drawee of cheque is always a -----------

a)

Banker

b)

Account holder

c)

Beneficiary

d)

None of the above

4.

Which of the following section of NI act is mismatched??

a)

Sec-5 deals with BOE

b)

Sec-4 deals with Promissory note

c)

Sec 6- Define cheque is an bills of exchange

d)

Sec-9 deals with holders in due course

e)

sec-10 deals with holder of Negotiable instrument

5.

Which of the following should have with holder of instrument to get the title of holder in due course

a)

A) Good faith

b)

B) Proper consideration

c)

C) Before maturity of instrument

d)

d) all A, B and C

6.

Which of the following statements are true regarding Demand Draft ?

a)

a) It is a cheque

b)

b) It is a bills of exchange

c)

c) For the purpose of Section 131 and 138, it is treated as Cheque

d)

d) All a ,b and C are true

e)

e) Only b and c

7.

Which are necessary for endorsement?

a)

It should be signed by maker

b)

it should be signed by holder

c)

signature should be on the back or on the face of the instrument

d)

All of the above

8.

Which of the following is not true regarding Bills

a)

If time of payment is not specified, then bill is payable on demand/at sight,

b)

A bill which is expressed to be payable after a fixed period or after sight or on a specified day or on the happening of an event which is certain to happen is called an 'usance bill/time bill'.

c)

The maturity date of a promissory note or a bill of exchange is the date on which if falls due

d)

3 days of grace are allowed on promissory note or a bill of exchange not payable on demand

e)

None of the above

9.

What a minor can do in his/her personal capacity ????

a)

Draw an instrument

b)

endorse an instruments

c)

Deliver and negotiate

d)

Can bind all parties except himself

e)

all of the above

10.

Interest @ ----------- p.a. is to be paid by the parties charged on the basis of a negotiable instrument if no rate of interest is specified in the instrument (w.e.f. 30.12.1988).

a)

15%

b)

18%

c)

12%

d)

10%

11.

Section ---- protection to paying bankers

a)

85

b)

80

c)

131

d)

138

12.

----------------is a formal certificate issued by the notary public certifying the fact of the dishonour of bill of exchange or promissory note and is based on the noting

a)

Protest

b)

Noting

c)

Suit

d)

None of the above

13.

Protection to collecting banker is provided under section ------------- of NI act.

a)

131

b)

138

c)

85

d)

100

14.

Dishonour of cheques for Insufficiency etc. of funds in the account is dealt by section ----- of NI act

a)

138

b)

131

c)

85

d)

100

15.

Return of cheques with reason 'Refer to drawer' will not attract prosecution under this section 138

a)

True

b)

false

16.

A cheque given as gift/donation will not be governed by section 138 if NI act

a)

True

b)

False

c)

Depends

d)

None of the above

17.

The Negotiable Instrument (Amendment & Misc. Provisions) Act 2002 important amendments have been made to certain provisions of the Negotiable Instrument . Which of the following is not true?/

a)

Doubling of the imprisonment term from one year to two years

b)

Doubling of penalty for the offence, i.e. upto twice the amount of the instrument

c)

Doubling of the period of time to issue demand notice to drawer from 15 to 30 days

d)

Empowering the magistrate to condone delay in filing complaint

e)

None of the above

18.

Where a cheque bears across its face an addition of the name of a banker either with or without the words “not negotiable”, that addition shall be deemed a crossing, and the cheque shall be deemed to be crossed specially and to be crossed to that banker is other wise known as

a)

Cheque crossed generally

b)

Cheque crossed specially

c)

is a bearer cheque

d)

None of the above

19.

Bank’s slip or Memo having Bank’s Official mark denoting that the cheque has been dishonoured shall be presumed to be the fact of dishonour. True or False

a)

false

b)

true

20.

Indian contract act was formulated in the year

a)

1872

b)

1932

c)

1956

d)

None of the above

21.

Contract of indemnity comes under purview of ???

a)

NI act

b)

Indian Contract Act

c)

IPC

d)

None of the above

22.

How many parties are there in contract of Guarantee??

a)

1

b)

2

c)

3

d)

4

23.

How many parties are there in contract of Indeminity?

a)

1

b)

2

c)

3

d)

4

24.

Which of the following combination is wrong?

a)

a) 124- indemnity

b)

b) 126-gurantee

c)

c) 148- Bailment

d)

d) 172- pledge

e)

e) None of the above

25.

Which of the following is not correct in relation to partnership?

a)

It is regulated by partnership act 1932

b)

It is an association of persons

c)

objective is to earn profit

d)

Any one or all can mange the firm

e)

all of the above

26.

The new Companies Act 2013 has prescribed the maximum number of members in case of a partnership firm should not be more than ---------- in case of partnerships.

a)

20

b)

10

c)

100

d)

None of these

27.

RBI Act was enacted on -------------

a)

8th March, 1934

b)

6th March, 1934

c)

7th March, 1934

d)

31th March, 1934

28.

The Standard Rate at which it (the bank) is prepared to buy or rediscount bills of exchange or other commercial paper eligible for purchase under this Act is other wise know as??

a)

Bank rate

b)

SLR

c)

PLR

d)

None of the above

29.

The present bank rate is ???

a)

7

b)

6

c)

6.75

d)

8

30.

Banking Regulation Act was enacted on

a)

1949

b)

1934

c)

1969

d)

1980

31.

In India, now companies are governed by Companies Act, =======?

a)

1956

b)

2013

c)

1972

d)

1932

32.

charges are created or evidenced or a copy thereof verified in the prescribed manner are filled with the concerned Registrar of Companies within ------ days from the date of its creation

a)

90

b)

60

c)

45

d)

30

33.

Henceforth, in case the total borrowings of any company, whether private or public, exceeds the aggregate of its paid up share capital and free reserves, apart from temporary loans as stated above, and for sale, lease, disposal of its undertaking, including mortgage, Company shall be required to pass Special resolution u/s 180 of 2013 Act.

a)

True

b)

false

34.

Limited liability partnership are to be registered under ??

a)

Partnership act-1932

b)

Companies act- 2013

c)

Registration not required

d)

None of the above

35.

A Private Company having only one Member and at least One Director. No compulsion to hold AGM. Conversion of existing private Companies with paid-up capital up to Rs 50 Lacs and turnover up to Rs 2 Crores is other wise known as ??

a)

Pvt ltd company

b)

chartered company

c)

public limited company

d)

one person compamy

36.

As per new companies act, Every company shall follow uniform accounting year as

a)

1st january to 31st december

b)

1st april to 31st march

c)

Any date as approved in resolution

d)

none of the above

37.

Every Listed Company can appoint auditor . Which of following statements are correct in this regard??

a)

individual auditor for 5 years

b)

a firm of auditors for 10 years

c)

his period of 5 / 10 years commences from the date of their appointment.

d)

All are correct

38.

Goods & Services Act was enacted in --------- and came into effect from --------.

a)

2016 and 01.07.2017.

b)

2017 and 01.07.2017.

c)

2016 and 01.04.2017.

d)

None of the above

39.

Which of the following is not a slab of GST???

a)

a) 5

b)

b) 12

c)

c) 18

d)

d) 28

e)

e) None of the above

40.

IBC act proposes to establish INSOLVENCY & BANKRUPTCY BOARD to make a paradigm shift from the existing ‘Debtor in possession’ to a

a)

Debtor in sale

b)

Debtor choice

c)

None of the above

d)

Creditor in control’

41.

Each creditor shall vote in accordance to voting share assigned if -------- % of creditor approve the resolution plan same needs to be implemented

a)

60

b)

75

c)

80

d)

51

42.

Order of priority for distribution of assets:

• Government dues (up to 2 years)

. Insolvency related costs

• Secured creditors and workmen dues up to 24 months

• Other employee’s salaries/dues up to 12 months

• Financial debts (unsecured creditors)

• Any remaining debts and dues

• Equity


Which is of the above is wrong in order

a)

Unsecured creditors

b)

Equity

c)

Government due should be next to financial debts

d)

None of the above

43.

Banking Ombudsman is a ------------authority functioning under India’s Banking Ombudsman Scheme 2006

a)

legal

b)

judicial

c)

quasi-judicial

d)

None of the above

44.

Which of the following is not a pillar of KYC guidelines

a)

Customer Acceptance Policy

b)

Customer Identification procedure (CIP)

c)

Risk Management ( MLRC)

d)

Monitoring of transactions

e)

Customer service

45.

NTR stand for

a)

a)Non taxable returns

b)

b)Non transaction report

c)

c) Non Profit Organizations Transactions Report

d)

d) None of the above

46.

All cash transactions of the value of more than Rupees ------- lacs or its equivalent in foreign currency needs to be reported under CTR mechanism.

a)

10

b)

5

c)

3

d)

1

47.

Branches should report any of the above suspicious behaviour of the customer / walk-in-customer noticed by them through CBS menu.

a)

STR

b)

CTR

c)

AMLALERT

d)

RPTRA

48.

All cash transactions, where forged or counterfeit Indian currency notes have been used as genuine will be reported by the Principal Officer (PO) to FIU-IND in the specified format (Counterfeit Currency Report – CCR) by ----------th of the succeeding month

a)

7

b)

10

c)

15

d)

21

49.

There are three independent steps or stages in Money Laundering

a)

-- Placement, Layering and distribution

b)

Placement, Layering and Integration

c)

parking, Layering and Integrat

d)

None

50.

Whoever commits the offence of money laundering shall be punished with the rigorous punishment for a term not less than ------ years but which may extend to ---------- yrs and shall also liable to fine, which may extend to Rs.------------ lacs.

a)

a) 3/7/5

b)

b) 3/5/7

c)

c) 3/5/10

d)

D) None of the above

51.

FATCA

a)

Foreign Account Tax Control Act

b)

Forign act Tax Compliance authority

c)

Foreign Account Tax Compliance Act

d)

Forign Account Tax Companies Act

52.

For approaching to OMBUDSMAN for banking complaints Which of the followings are the conditions

a)

A) Bank has rejected the complaint and/or no reply within one month

b)

B) period of 1 year has not elapsed after bank had rejected the representation

c)

C) It is not subject matter already settled by Ombudsman.

d)

D) It is not pending with any court

e)

E) All

53.

Any consumer individually or jointly, consumer organisation can file complaint within ------------ years from the date of cause of action preferably within 3 months can complaint under COPRA.

a)

1

b)

2

c)

3

d)

5

54.

Which of the following authority or jurisdiction are not matched under COPRA ??

a)

a) district Forum- complain up to 20 lacs

b)

b) state commission - upto 100 lacs

c)

c) National commission - 100 lacs and above

d)

d) None

55.

A comprehensive Banker’s Fair Practice Code prepared by Indian bank Association has been used as a bench mark standard by the BCSBI. The code provides protection to the customers on day-to-day basis on banking operations. This code was recommended by

a)

Shri S S Tarapore Committee

b)

Damodarn committee

c)

Tondon Committee

d)

Malhotra committee

56.

Legal guardian cannot open a joint account with minor ?

a)

True

b)

False

57.

No joint account of two or more MINORS TO BE OPENED??

a)

True

b)

False

58.

Which of the following is true in regards to accounts opened by illiterate person??

a)

No cheque book should be issued

b)

No current account should be opened

c)

Joint account of two illiterates (close relatives can be opened) – operational instructions should be jointly or survivor and not either or survivor

d)

Joint account of illiterate with literate close relative can be opened but no cheque book should be issued (joint operation only

e)

All options are true

59.

Who is not competent to enter into a valid contract??/

a)

Blind person

b)

illiterate person

c)

Senior citizen

d)

Minor

60.

● Cheque book can be issued to blind account holders?

a)

True

b)

false

61.

A ------------------ is an obligation annexed to the ownership of property, arising out of confidence reposed in a person/ group of persons and accepted by him/them for the benefit of another or of another and the owner

a)

Trust

b)

company

c)

club

d)

HUF

62.

Who can not be called as coparceners????

a)

Widow male

b)

widow female

c)

girl child

d)

Senior citizen

63.

HUF letter should be signed by the

a)

karta only

b)

coparcerners

c)

karta and all the major co-parcerners

d)

None

64.

Clubs, Associations, Committees, Funds etc are not a legal entity unless they are incorporated under the

a)

Trust act

b)

Companies Act

c)

partnership act

d)

None of the above

65.

Bank can create a charge against LIC policies through???

a)

pledge

b)

assignment

c)

mortgage

d)

lien

66.

which of the following is not matched ??/

a)

immovable property- equitable mortgage

b)

pledge- NSC certificate/gold

c)

LIC policies- Assigment

d)

Bank's own deposit - pledge

e)

movable - hypothecation

67.

Banker's right of lien is a ??/

a)

particular lien

b)

general lien

c)

both

d)

none of the above

68.

Banker has right of------------- between two or more accounts maintained by a customer, if one of them is in debit and their relationship in both the accounts is of debtor and creditor

a)

general lien

b)

bailee

c)

compromise

d)

set-off

69.

Bailment of goods for the purpose discharging financial debt is called ?

a)

Pledge

b)

bailment

c)

assignment

d)

None of the above

70.

Cases wherein the claim of debt due to Bank is Rs----- lakh and above ,suit/application is to be field before DRT under the RBDA act 1993.

a)

8

b)

10

c)

15

d)

20

71.

This test is being designed by TEAM BARODA ACADEMY KOLKATA ? Do you appreciate?

a)

yes

b)

no